Remittances and Multidimensional Poverty in Mexico: A Comparative Analysis of Income Sources

Moises Librado-Gonzalez (), German Osorio-Novela and Natanael Ramirez-Angulo
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Moises Librado-Gonzalez: School of Economics and International Relations, Autonomous University of Baja California, Tijuana 22390, Mexico
German Osorio-Novela: School of Economics and International Relations, Autonomous University of Baja California, Tijuana 22390, Mexico
Natanael Ramirez-Angulo: School of Economics and International Relations, Autonomous University of Baja California, Tijuana 22390, Mexico

Economies, 2025, vol. 13, issue 12, 1-19

Abstract: This study aims to analyze the effect of remittances on multidimensional poverty in Mexico by comparing them with other sources of household income, such as labor income and social spending from transfers, subsidies, and allocations. Furthermore, economic growth dynamism is incorporated as a control variable. A micro-panel with cross-sectional and temporal fixed effects covering the 32 federative entities from 2010 to 2024 is used for this purpose. The results reveal that, although remittances have a moderate alleviating effect on poverty, it is greater than the impact of social spending by state governments. In contrast, labor income is identified as the main factor in reducing multidimensional poverty. These findings underscore the importance of promoting the utilization of remittance flows through financial inclusion strategies to strengthen their contribution to sustained household well-being and consolidate them as a structural instrument against the persistent challenges of multidimensional poverty in Mexico.

Keywords: multidimensional poverty; remittances; wage income; social spending (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:13:y:2025:i:12:p:360-:d:1812072

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